E-Soul(SH:603258) Tai Ping Yang·2024-10-31 03:07Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected relative increase of over 15% compared to the CSI 300 index in the next six months [2][8][14]. Core Insights - The company experienced a year-on-year revenue decline of 18.35% in the first three quarters of 2024, with total revenue of 413 million yuan and a net profit of 74.73 million yuan, down 34.62% [3][4]. - The third quarter of 2024 showed a quarter-on-quarter revenue improvement of 4.43%, primarily driven by the 14th anniversary event of the core product "Dream Three Kingdoms 2," which accounts for over 60% of the company's revenue [4]. - The company has a rich pipeline of new products, including "Xianxia Era" and "Barbarian Battle 2," which are expected to contribute positively to future performance [5]. Revenue and Profit Forecast - The company forecasts revenues of 603 million yuan, 1.334 billion yuan, and 1.558 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of -10.93%, 121.19%, and 16.79% [7][10]. - Net profits are projected to be 90 million yuan, 355 million yuan, and 430 million yuan for the same years, with corresponding growth rates of 59.03%, 293.28%, and 20.88% [7][10]. Dividend and Share Buyback - The company distributed a cash dividend of 2.32 yuan per 10 shares, totaling approximately 56.45 million yuan, and has repurchased about 790,000 shares for a total expenditure of approximately 13.81 million yuan [6].